BGEO Group Financial Update
Notes to Key Ratios
1 Return on average total assets (ROAA) equals Profit for the period divided by monthly average total assets for the same period;
2 Return on average total equity (ROAE) equals Profit for the period attributable to shareholders of the Group divided by monthly average equity attributable to shareholders
of the Group for the same period;
3 Net Interest Margin equals Net Banking Interest Income of the period divided by monthly Average Interest Earning Assets Excluding Cash for the same period; Interest
Earning Assets Excluding Cash comprise: Amounts Due From Credit Institutions, Investment Securities (but excluding corporate shares) and net Loans To Customers And
Finance Lease Receivables;
4 Loan Yield equals Banking Interest Income From Loans To Customers And Finance Lease Receivables divided by monthly Average Gross Loans To Customers And
Finance Lease Receivables;
5 Cost of Funds equals banking interest expense of the period divided by monthly average interest bearing liabilities; interest bearing liabilities include: amounts due to
credit institutions, client deposits and notes and debt securities issued;
6 Operating Leverage equals percentage change in revenue less percentage change in operating expenses;
7 Cost Income Ratio equals operating expenses divided by revenue;
8 Daily average liquid assets (as defined by NBG) during the month divided by daily average liabilities (as defined by NBG) during the month;
9 Liquid assets include: cash and cash equivalents, amounts due from credit institutions and investment securities;
10 Leverage (Times) equals total liabilities divided by total equity;
11 NPL Coverage Ratio equals allowance for impairment of loans and finance lease receivables divided by NPLs;
12 NPL Coverage Ratio adjusted for discounted value of collateral equals allowance for impairment of loans and finance lease receivables divided by NPLs (discounted
value of collateral is added back to allowance for impairment)
13 Cost of Risk equals impairment charge for loans to customers and finance lease receivables for the period divided by monthly average gross loans to customers and
finance lease receivables over the same period;
14 BIS Tier I Capital Adequacy ratio equals Tier I Capital divided by total risk weighted assets, both calculated in accordance with the requirements of Basel Accord I;
15 BIS Total Capital Adequacy ratio equals total capital divided by total risk weighted assets, both calculated in accordance with the requirements of Basel Accord I;
16 New NBG (Basel 2/3) Tier I Capital Adequacy ratio equals Tier I Capital divided by total risk weighted assets, both calculated in accordance with the requirements the
National Bank of Georgia instructions;
17 New NBG (Basel 2/3) Total Capital Adequacy ratio equals total capital divided by total risk weighted assets, both calculated in accordance with the requirements of the
National Bank of Georgia instructions;
18 Old NBG Tier I Capital Adequacy ratio equals Tier I Capital divided by total risk weighted assets, both calculated in accordance with the requirements the National Bank
of Georgia instructions;
19 Old NBG Total Capital Adequacy ratio equals total capital divided by total risk weighted Assets, both calculated in accordance with the requirements of the National
Bank of Georgia instructions;
Holding company of BANK OF GEORGIA
BGEO www.bgeo.com
GROUP
November 2015
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